Ho Chi Minh City Optimistic With New Growth Goals

At the 19th Party Committee meeting, Ho Chi Minh City has proposed a growth target higher than the whole country in the context that ecomony is on the brick of recession.

Is this possible?

The chair of the conference – Mr. Nguyen Van Nen, Politburo member, Secretary of the Ho Chi Minh City Party Committee spoke about the growth target of 2023

Morning November 30, 2022, the Ho Chi Minh City Party Committee held the 19th Executive Committee of the HCMC Party Committee. The conference took place in one day, discussed and reported on socio-economic association, government construction, completion of Thu Thiem new urban area before 2030, solving problems and recommendations of the people.

Towards Growth Target Reaching 8%

During the conference, Mr. Nguyen Van Nen – Secretary of the City Party Committee of HCMC set a target to grow the gross regional domestic product (GRDP) from 7.5 to 8%, lower than 2022 but still higher than the average of country (6.5%). Previously, according to a report at a meeting on the morning November 27, 2022 with Prime Minister Pham Minh Chinh, the city was forecast to achieve a growth rate of over 9%, exceeding the initial target of 6-6.5%. However, due to concerns about future ecomony, HCMC has actively adjusted its target.

HCMC’s GRDP growth from 2016 to 2023 (forecast)

Over the past two quarters, about a third of the world economy has posted negative growth in a row, global inflation has increased, and global growth is forecast to slow from 6% in 2021 to 3.2% in 2022 then 2 .7% next year. This is the lowest growth rate since 2001 excluding the period of the 2008 global financial crisis and the Covid-19 pandemic.

HCMC’s GRDP growth towards a high level is a good sign that Vietnam’s economy is still maintaining a stable trend in the context of the world economy’s near-recession.

Backlog Issues

Mentioned at the conference, although the socio-economic situation in Ho Chi Minh City has achieved many positive results, such as the rapid recovery after the pandemic, many problems still remain in parallel related to gasoline supply, real estate market, securities, bonds and disbursement of public investment.

The scene of people waiting hours for gas is expected to continue in the near future

The Government Has Stepped In

The above problems are also difficulties of the country in the economic transition period. Recently, the government has taken steps to regulate capital and real estate market activities to ensure that the market operates properly and safely. This process has been causing a lot of influence on the market sentiment, however, this is a must.

Regarding the monetary issue, the Government of Vietnam has set up 3 groups to deal with the internal issues of currency, capital, real estate and bonds to maintain confidence for investors.

The problem of shortage of petrol and oil supply, the Government has assigned to Minister of Industry and Trade Nguyen Hong Dien to handle.

Thanks to the Government’s measures, the country’s economic statistics in November recorded some positive changes:

• The consumer price index (CPI) in November increased by 0.39% compared to October and by 4.37% over the same period last year. Average CPI in 11 months of 2022 increased by 3.02% over the same period last year.

• Trade balance in 11 months is estimated to have a trade surplus of 10.6 billion USD (in the same period last year, trade surplus is 0.6 billion USD).

• Implemented foreign direct investment (FDI) in Vietnam in 11 months reached nearly 19.7 billion USD, up more than 15% over the same period, the highest level in 11 months in the past 5 years.

Data anlyse according to the General Statistics Office’s report

• In 11 months, there were 194,700 newly established enterprises and returned to the market but also 132,300 enterprises withdrew, up 24.3%.

It is forecasted that until the end of this year, the economic situation of Ho Chi Minh City and the country will continue to fluctuate due to the influence of the world economy.

However, in challenges there will always be chances because…

‘April showers bring May flowers!’ 

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